Skip to main content

How to calculate Monthly Recurring Revenue (MRR)

Ronny Christensen avatar
Written by Ronny Christensen
Updated this week

📌 Method: MemberMonthlyRecurringRevenue

This article explains how we calculate monthly revenue from recurring memberships.


How is MRR calculated?

  1. Filter memberships

    • Only memberships with a recurring payment (e.g. monthly or annual payments) are included.

  2. Find invoices in the period

    • All purchases and payments during the specified period are deducted from the database.

  3. Calculation:

    • Total revenue for the period is divided by the number of returning members.

  4. Group by segment (gender, age, or aggregate).

    • Data is broken down to understand revenue across different groups.


Example calculation

We calculate the MRR for January, February and March:

Month

Billed revenue

Number of active subscribers

MRR per member

January

100,000 kr.

200

500 kr.

February

105.000 kr.

210

500 kr.

March

95.000 kr.

190

500 kr.

  1. Calculate MRR for March:

    95.000190=500 kr. per member\frac{95.000}{190} = 500 \text{ kr. per member}19095.000=500 kr. per member

  2. Compare MRR over time:

    • An increase means growth, while a decrease can indicate a loss of subscribers.


Why is this important?

MRR is a crucial KPI for subscription-based businesses as it shows the expected recurring revenue. Businesses use this number to:
Predict future revenue
Identify subscriber
✅ growth or decline Plan marketing and customer engagement

💡 Result: A graph showing the monthly recurring revenue over time.

Do you have any questions? Contact us via the Intercom chat! 😊

Did this answer your question?